Why are Customers Loyal in Sharing-Economy Services? A Relational Benefits Perspective

Abstract

Purpose – This study seeks to:(1) introduce a systematic taxonomy of relational benefits that drive consumers to select a service provider and then to maintain the relationship with them in sharing-economy businesses; (2) assess the relative strengths of these relational benefits in influencing consumers’ behavioral intentions on sharing-economy services; and (3) examine how commitment mediates the influence of relational benefits on customer loyalty in this context.Design/methodology/approach – This study first conducted a focus group discussion and then collected data from online surveys completed by 440 respondents in China. The study employed structural equation modeling to test the hypotheses.Findings – The findings of the study show that confidence and social benefits, as previous studies indicate, have significant and positive effects on commitment in sharing-economy services. Moreover, safety benefits, a new type of relational benefits discovered in sharing-economy services, also have significant effects on commitment. Furthermore, this study finds that commitment acts as the mediating mechanism, through which confidence, social, and safety benefits operate with respect to their effects on customer loyalty. Interestingly, special treatment benefits were found to have insignificant effects on commitment and loyalty in this context.Practical implications – This paper provides sharing-economy managers with insight on how to better create and sustain loyal relationships through the provision of relational benefits.Originality/value – First, this study provides a framework for incorporating relationship marketing and sharing-economy services. Second, this study takes the initial step to offer a clear view of why customers would like to be involved in the peer-to-peer relationship in the sharing economy and to explain how to strengthen the relationships between customers and the peer service providers.